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American Airlines Replaces Executives

American Airlines PlaneEveryone knows that American Airlines has been having its fair share of problems lately. A lot of this started after its parent company, AMR Corp., filed for bankruptcy protection. Well, it now seems that American Airlines is about to have an executive officer shake up.

Just this past Tuesday, American Airlines said that three of its senior executives will leave the company. Apparently, they will be gone by December 31. Reports go on to show that the airline’s top operations officer, and its vice president are set to retire. On top of this, the chief information officer is set to resign as well. However, these changes, could mean big things for others at American Airlines. This is because the airline has already made it clear that it will replace the people from within the company.

Although these are the three latest people to leave American Airlines, they are not the only ones that have recently abandoned ship. CEO Gerard Arpey retired just last week after AMR filed for its bankruptcy protection. In fact, the bankruptcy claim was something that Arpey had resisted for several years. Some are saying that it was the bankruptcy filing that finally caused him to leave the company.

Thomas Horton, who is the new CEO of American Airlines, said that the company will be replacing the three top officials with insiders. This should help the company be able to shuffle some people around and enable the group to broaden its team’s experience. All of this is going on while the team is in the middle of restructuring.

The executive vice president of operations, Robert W. Reding, is going to retire. American Airlines said that he is to be replace by James B. Ream. He will now hold the title of senior vice president. Overall, he is to oversee the airline’s flight operations and planning. He will also continue his current job of running the maintenance functions of the airline.

The senior vice president and chief information officer Monte Ford is one of the officials who will resign as of December 31. Reports suggest that he is going to be replaced by Maya Leibman. For those that do not know, Mr. Leibman is currently the president of American’s Advantage frequent-flier program.

Of course, some industry experts are worried that this shake up is going to cause a lot of problems for the company. Hopefully, they are wrong, as the airline has about all the problems that it can handle at this moment. Currently, AMR has a debt of about $29.6 billion and assets of $24.7 billion when it filed for Chapter 11 protection in federal court. AMR said that it hopes to do what its rivals Delta, US Airways, and United did in the past decade. Pretty much, they hope to cut labor and aircraft costs in bankruptcy to emerge as a lower-cost company.

 

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